NAGA swung to profit in 2023 despite revenue dip
NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, announced the financial results for the first half ending June 30, 2023.
The group’s brokerage business revenue was reported at €19.5 million, down 44 percent from €35 million the year earlier. In terms of its bottom-line metrics, however, the Q1 EBITDA was €2.3 million compared to a net loss of -€2.7 million in H1 2022.
Following a restructuring in the summer, NAGA decreased its cost base by nearly two thirds when compared with the same period in the year earlier whilst keeping new customer growth 15 % above 2022 levels.
In its latest annual report, the publicly traded fintech attributed the bulk of its solid performance to the strong trading activity. In particular, NAGA saw over 4.9 million trades executed and a trading volume of €69 billion. That compares to a record €250 billion in 2022.
NAGA, which offers investment in stocks and crypto via its mobile app, also reported that the number of active traders rose by 22% compared to the same period in the previous year.
Another key metric reflecting NAGA’s growth is the increase in assets under custody, which have grown by 48% in H1 2023 from €35 million the previous year.
As Sam Chaney, Chief Commercial Officer of NAGA, stated, “We are thrilled with our performance and future growth prospects. Our focus on cost reduction and improved core KPIs has positioned us well for continued success in the global market.”
“2023 will be a steppingstone into the future for NAGA. We are extremely satisfied with the turnaround that occurred during the first half year of 2023 and this is confirmed by the preliminary results of the first six months of 2023. Our cost base has been significantly optimized leading to a positive EBITDA compared to last year. We have reassessed our strategy and have now shifted our attention to global growth, new acquisitions, and expansion of our license base which will make NAGA a strong brand and give a solid footprint in new markets”, commented the CFO of NAGA, Christos Charalambous.
Earlier in June, NAGA said it secured $8.2 million via convertible bonds, proceeds of which will be used to meet its working capital requirements.
NAGA has also made a series of new additions to its top management team, hiring new executives for key leadership positions, with Michael Milonas taking on the role of Group CEO (Chief Strategy Officer). Benjamin Bilski, the company’s previous CEO, will now shift his focus to technology as the Chief Information Officer (CIO). Additionally, NAGA has appointed Sam Chaney as the Chief Commercial Officer (CCO), responsible for driving global growth in emerging markets.
